Red Centre most vulnerable to tourist drought

A new report says the Central Australian region outside Alice Springs is the most vulnerable in the nation to sudden changes in the tourism sector.

The Tourism Research Australia report says 24 per cent of the economy in the region is dependent on tourism.

This compares with a national average of 3 per cent.

Tourism is estimated to generate 5 per cent of the Alice Springs economy.

Tourism Central Australia's Peter Grigg says the region could be significantly affected by the strength of the Australian dollar.

"Obviously that will be a huge challenge for Australia in itself," he said.

"But for a region that is so reliant on the tourism dollar, it could really start to feel that effect."

Mr Grigg says the report highlights how the economy is vulnerable to sudden changes in the tourism industry.

"If tourism is such a vital economic return to an economic region, and there are a number of challenges and a number of - let's call them shocks that could come - you then find yourself having that one string to your bow that could be affected."